Amongst the Brexit and various international financial and political events, there have been winners and losers that have impacted on investment opportunities.

Positive company earnings have reinforced an appreciation of steady, although slow, global recovery. Interest rates have begun to rise in the USA1 Other central banks are considering gradual withdrawing monetary support and raising interest rates2

During the last 6 months, UK equities have continued to move higher, building on gains made at the start of the year. If you have been invested in a well-balanced portfolio – this should have delivered greater returns than a cash deposit.

Overseas equities also delivered positive performance, driven by encouraging economic news from around the world. Those investors prepared to invest in these markets may have received returns ahead of more cautious portfolios (depending on the specific investment funds and management of those investments.

 

Outlook:

Dividend yields from UK stocks are set to deliver potential earnings growth, worldwide the general view is favourable with most economies on a sound footing. These comments are over simplistic of course and as usual specific details may vary from the ‘direction of travel’ – good investment management an individual either possesses or needs help from an Independent Financial Adviser (IFA) backed up with an ongoing service arrangement that takes account of changing circumstances, legislation and investment markets.

Apart from Equities (Stocks and Shares) an important sector is the Bond Market, in recent years steady returns at or around the rate of inflation have changed to reductions in performance in some areas with a view being that the government bond market should be treated with caution and that this sector may be set for a difficult time in future.

Real Estate (Property) has benefitted more from rental income than capital growth, there is short term concern over property prices following the UK decision to withdraw from the European Union, never the less confidence remains high in UK real estate as a source of sustainable income.

If you have the time and skill set – investing can be a profitable enterprise, this must be balanced with the possibility of failure from time to time, particularly in the short term. Alternatively, there are experienced IFAs that will assist in developing a portfolio that has the potential to deliver rewards when they will do most good.

 

1 https://www.theguardian.com/business/2017/mar/15/us-interest-rate-rise-borrowing-costs

2 http://www.telegraph.co.uk/business/2017/10/14/worlds-big-central-banks-should-consider-joint-interest-rate/

 

Eamon Dorling – Delivering simple dinancial advice, that really works.